Interrelation Between Financial Results and Socially Responsible Investments of a Company

Abstract

The issue of covering socially responsible activities with the strategic management of a company, and the study of its further impact on a company's efficiency is the undisputed worldwide. However, in Ukraine this policy is still undeveloped due to the lack of funds for the implementation of the policy and current strategy oriented on shortterm functioning . As a result, these aspects have a negative impact when companies neglect not only longterm development, balso put external factors of more costly and environmentally harmful production on consumers. If a company is oriented on a longterm result, investments in social responsibility activities have a positive impact on financial performance in terms of reduced costs and increased competitiveness through the use of new technology, fund raising, etc. The aim of this work is to improve the system of corporate social responsibility (CSR) by finding a statistical correlation between the amount of investment in the basic components of CSR and the performance indicators of a company. The main goal of this paper is to conduct a correlation and regression analysis of indicators of social investment and financial performance of the leading metallurgical companies. Evaluation under this methodology seeks to identify the impact of management decisions taken by each particular company to control risk factors affecting the efficiency of industry.